Nebraska fires burn grazing lands, threaten plans to grow US cattle herd

Massive wildfires have burned vast swaths of grazing lands in Nebraska, endangering cattle producers' plans for production increases that could help ease record-high U.S. ​beef prices.

The loss of grasslands in the second-biggest cattle-producing state removes a feed source for herds and could delay ranchers ‌from expanding as they struggle with widespread drought, state and industry officials said.

Fueled by fierce winds, fires have burned nearly 775,000 acres since last week, covering an area about the size of Rhode Island, according to data from the Nebraska Emergency Management Agency. It added the causes of the fires are undetermined.

The largest Morrill Fire was ​about 67% contained as of Thursday after being first reported on March 12, the agency said.

That amount of land is a grazing ​resource for about 40,000 cows, said Sherry Vinton, director of the Nebraska Department of Agriculture. Though cattle deaths were ⁠thought to be minimal, producers could delay expansion plans if they cannot find alternative pasture lands or feed, she said.

"This will have a definite ​impact because you are in the heart of cattle country there and that's the area where you're going to primarily have breeding stock," said ​Vinton, a fifth-generation rancher.

Nationwide, cattle inventories have dwindled to a 75-year low over the past seven years as an extended drought raised feeding costs and high prices drove producers to send animals to slaughter instead of keeping them for breeding.

Tight supplies pushed up beef prices. They also hurt profits for meatpackers paying more for cattle to slaughter, and Tyson ​Foods (TSN.N), opens new tab closed a large beef plant in Nebraska this year.

HERDS EXPAND SLOWLY

A larger U.S. herd could increase beef production and help to bring down ​prices amid strong demand from consumers. The rebuilding process has been slow, though, due to lingering dryness, high interest rates that make it expensive to expand, and ‌concerns among ⁠ranchers over whether cattle prices could sink.